Correlation Between JD SPORTS and Anheuser Busch

Can any of the company-specific risk be diversified away by investing in both JD SPORTS and Anheuser Busch at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JD SPORTS and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JD SPORTS FASH and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on JD SPORTS and Anheuser Busch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in JD SPORTS with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD SPORTS and Anheuser Busch.

Diversification Opportunities for JD SPORTS and Anheuser Busch

0.0

Correlation Coefficient

JD SPORTS  Anheuser Busch

Pay attention - limited upside

The 3 months correlation between 9JD and Anheuser is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JD SPORTS FASH and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev and JD SPORTS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on JD SPORTS FASH are associated (or correlated) with Anheuser Busch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch InBev has no effect on the direction of JD SPORTS i.e., JD SPORTS and Anheuser Busch go up and down completely randomly.

Pair Corralation between JD SPORTS and Anheuser Busch

Assuming the 90 days horizon JD SPORTS FASH is expected to generate 2.45 times more return on investment than Anheuser Busch. However, JD SPORTS is 2.45 times more volatile than Anheuser Busch InBev SANV. It trades about 0.1 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about 0.03 per unit of risk. If you would invest  88.00  in JD SPORTS FASH on April 24, 2025 and sell it today you would earn a total of  14.00  from holding JD SPORTS FASH or generate 15.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

JD SPORTS FASH  vs.  Anheuser Busch InBev SANV

JD SPORTS FASH

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JD SPORTS FASH are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, JD SPORTS reported solid returns over the last few months and may actually be approaching a breakup point.

Anheuser Busch InBev

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anheuser Busch InBev SANV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward-looking signals, Anheuser Busch is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with JD SPORTS and Anheuser Busch

The main advantage of trading using opposite JD SPORTS and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD SPORTS position performs unexpectedly, Anheuser Busch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anheuser Busch will offset losses from the drop in Anheuser Busch's long position.

The idea behind JD SPORTS FASH and Anheuser Busch InBev SANV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.